Pick and Choose: A Venture's Cognitive Toolbox to Business Model Innovation

40 Pages Posted: 13 Sep 2017

See all articles by Martina Dopfer

Martina Dopfer

Alexander von Humboldt Institute for Internet and Society; University of St. Gallen; Haas School of Business Berkeley

Date Written: September 2017

Abstract

There is a consensus that cognition impacts how ventures innovate their business models. However, little is known about which cognitive capabilities facilitate the venture's business model innovation (BMI). To investigate this phenomenon, this article reviews current concepts and literature on BMI and dynamic capabilities from a cognitive perspective. It derives the following conceptualizations: 1) Cognitive activities underpin BMI-related sensing, seizing, and reconfiguring. Thus, BMI can become a cognitive venture capability. 2) The business model as a mental model changes through sensemaking, new heuristics, and routines and beliefs. Those mental operations facilitate the systematic definition and adaptation of the business model, and its continuous innovation. 3) The maturing venture benefits from the routines and beliefs implicit in BMI, which ensures its competitive advantage.

Keywords: business models, business model innovation, cognition, new ventures, cognitive capability

Suggested Citation

Dopfer, Martina, Pick and Choose: A Venture's Cognitive Toolbox to Business Model Innovation (September 2017). HIIG Discussion Paper Series No. 2017-06, Available at SSRN: https://ssrn.com/abstract=3035244 or http://dx.doi.org/10.2139/ssrn.3035244

Martina Dopfer (Contact Author)

Alexander von Humboldt Institute for Internet and Society ( email )

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University of St. Gallen ( email )

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St. Gallen, 9000
Switzerland

Haas School of Business Berkeley ( email )

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Berkeley, CA 94720
United States

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